On June 4, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between the IIROC staff and James Gwilym Jones.

Jones admitted he failed to use due diligence to learn and remain informed of the essential facts relative to six clients, and failed to ensure recommendations were suitable for his clients.

Specifically, Jones admitted to the following violations:

a) Relative to six clients, during separate multi-year periods between March 2004 and March 2009, he:

i) failed to use due diligence to learn and remain informed of the essential facts relative to his clients, contrary to IIROC Rule 1300.1(a);

ii) failed to use due diligence to ensure the recommendation of any security for his clients was suitable for them based on factors including the clients’ financial situation, investment knowledge, investment objectives and risk tolerance, contrary to IIROC Rule 1300.1(q);

Pursuant to the Settlement Agreement, Mr. Jones agreed to the following penalty:

a) A $200,000fine;

b) And prohibition from registration with IIROC in any capacity for five years.

Jones also agreed to pay costs in the amount of $10,000.

IIROC formally initiated the investigation into Jones’s conduct in March 2009. The alleged violations occurred when he was a registered representative with the Calgary branch of Dundee Securities Inc., an IIROC-regulated firm. He’s is no longer a registrant with an IIROC-regulated firm.